CANADA STOCKS-TSX led down by mining, energy on economy unease

Mon Jul 30, 2012 12:16pm EDT
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* TSX down 23.05 pts, or 0.2 pct, at 11,743.31
    * Skepticism whether ECB, Fed will meet expectations
    * No details on action from Geithner, Schaeuble meeting

    By Jon Cook
    TORONTO, July 30 (Reuters) - Canada's main stock index fell
on Monday, reversing early gains, as mining and energy shares
slid on concerns that expected stimulus measures from the United
States and Europe may not be enough to shore up their fragile
    The U.S. Federal Reserve and the European Central Bank both
meet this week, and market expectations have been high in recent
days that they will act to stimulate economic growth and that
the ECB will tackle the spreading euro zone debt crisis. ECB
President Mario Draghi said last week the bank was ready to do
whatever was necessary, within its mandate, to save the euro.
    But after last week's optimism, some investors on Monday
turned skeptical that ECB policymakers will deliver in line with
market expectations when they meet on Thursday, pressuring the
euro and checking gains in commodities. 
    "There's a lot of chatter, but not much about how he's
(Draghi) going to do it and whether he's going to get the
approval from other communities," said Sid Mokhtari, market
technician and director, institutional equity research, CIBC
World Markets.
    Shares turned lower after a meeting between U.S. Treasury
Secretary Timothy Geithner and Germany's finance minister,
Wolfgang Schaeuble, on Monday failed to produce any concrete
details about how the euro zone would tackle the debt crisis.
    Most of Canada's 10 main sectors fell, led by the
influential materials sector, which slid 0.3 percent. Top
fertilizer producer Potash Corp was the biggest
decliner, falling 2.1 percent to C$44.93. Agrium 
dropped 1.4 percent to C$95.98, and First Quantum Minerals
 was off 2.3 percent at C$18.18.
    Ivanhoe Mines Ltd tumbled nearly 4 percent to
C$8.44 after Rio Tinto Plc  said on Monday it
paid about $935 million for 133.6 million shares, or 51 percent
of the stock the Canadian miner put up in a rights offering.
    At 11:47 a.m. EDT (1647 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was down 23.05 points, or 0.2
percent, at 11,743.31. The index retreated after touching
11,803.78, its highest level since July 5.
    Canadian energy shares fell 0.3 percent as U.S. oil prices
slipped on signs of lower production from OPEC. Oil and
gas losses were led by Suncor Energy, down 1.8 percent
at C$31.32, Cenovus Energy, which fell 1.9 percent to
C$30.96, and Cameco Corp, off 2.9 percent at C$21.44.
    Canadian Oil Sands Ltd edged down 0.7 percent to
C$20.86 after the pipeline company announced after the close on
Friday that its second-quarter profit sank 71 percent due to
major plant maintenance that reduced production, lower oil
prices and higher operating costs. 
    Sentiment also soured after data on Monday showed Spain slid
deeper into recession in the second quarter as tough austerity
measures took effect both on overall demand and the price
consumers have to pay for goods. 
    Canadian financial shares slid 0.2 percent. Toronto-Dominion
Bank led losses, falling 0.6 percent to C$78.97.
Manulife Financial Corp sank 0.4 percent to C$10.76, as
the market anticipated Canada's largest life insurer will likely
post a loss for the second quarter when it reports later this